Correlation Between WisdomTree Gold and WisdomTree
Can any of the company-specific risk be diversified away by investing in both WisdomTree Gold and WisdomTree at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining WisdomTree Gold and WisdomTree into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WisdomTree Gold 3x and WisdomTree SP 500, you can compare the effects of market volatilities on WisdomTree Gold and WisdomTree and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in WisdomTree Gold with a short position of WisdomTree. Check out your portfolio center. Please also check ongoing floating volatility patterns of WisdomTree Gold and WisdomTree.
Diversification Opportunities for WisdomTree Gold and WisdomTree
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between WisdomTree and WisdomTree is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree Gold 3x and WisdomTree SP 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree SP 500 and WisdomTree Gold is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on WisdomTree Gold 3x are associated (or correlated) with WisdomTree. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree SP 500 has no effect on the direction of WisdomTree Gold i.e., WisdomTree Gold and WisdomTree go up and down completely randomly.
Pair Corralation between WisdomTree Gold and WisdomTree
Assuming the 90 days trading horizon WisdomTree Gold 3x is expected to generate 3.52 times more return on investment than WisdomTree. However, WisdomTree Gold is 3.52 times more volatile than WisdomTree SP 500. It trades about 0.15 of its potential returns per unit of risk. WisdomTree SP 500 is currently generating about 0.01 per unit of risk. If you would invest 1,463,300 in WisdomTree Gold 3x on November 29, 2025 and sell it today you would earn a total of 811,000 from holding WisdomTree Gold 3x or generate 55.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.39% |
| Values | Daily Returns |
WisdomTree Gold 3x vs. WisdomTree SP 500
Performance |
| Timeline |
| WisdomTree Gold 3x |
| WisdomTree SP 500 |
WisdomTree Gold and WisdomTree Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WisdomTree Gold and WisdomTree
The main advantage of trading using opposite WisdomTree Gold and WisdomTree positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WisdomTree Gold position performs unexpectedly, WisdomTree can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in WisdomTree will offset losses from the drop in WisdomTree's long position.| WisdomTree Gold vs. Vanguard FTSE Developed | WisdomTree Gold vs. Leverage Shares 2x | WisdomTree Gold vs. Amundi Index Solutions | WisdomTree Gold vs. Amundi Index Solutions |
| WisdomTree vs. GraniteShares 3x Long | WisdomTree vs. GraniteShares 3x Long | WisdomTree vs. WisdomTree Gold 3x | WisdomTree vs. WisdomTree Gold 3x |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Commodity Directory module to find actively traded commodities issued by global exchanges.
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